Stocks With High Yields and Investment Grade Credit Ratings: Ares Capital Vs. VICI Properties – Which is the Better Buy?

New York, NY – Investors often prioritize total returns when evaluating their portfolios, seeking to maximize gains and build wealth. However, some experts suggest that focusing solely on unrealized gains can be akin to accumulating equity in a property without generating positive cash flow. A balanced approach between capital gains and income may offer a more sustainable strategy for investors.

One such investment opportunity is Ares Capital, offering a 9% yield to investors. Managed by Ares Management, Ares Capital boasts a significant asset base of $23.1 billion spread across 510 portfolio companies. Despite challenges posed by the pandemic, Ares Capital experienced growth in both portfolio value and the number of portfolio companies. With a strategic focus on first-lien senior secured loans, Ares Capital aims to mitigate risks and enhance returns for investors.

In the realm of real estate investment trusts (REITs), VICI Properties emerges as a compelling option with a 6% yield. As the largest experiential REIT in the U.S., VICI Properties holds iconic gaming properties in Las Vegas and beyond, coupled with a growing portfolio of non-gaming leisure properties. With stable long-term leases and a strong rent roll from S&P 500 tenants, VICI Properties demonstrates resilience in the face of economic uncertainties.

Both Ares Capital and VICI Properties offer investors attractive valuations, growth potential, and steady income streams. Ares Capital’s prudent investment decisions and diversified portfolio position it for long-term success, while VICI Properties’ strategic lease agreements and high operating margins reflect stability in the REIT sector. For investors seeking quality income opportunities, both Ares Capital and VICI Properties present compelling “Buy” options in the market.